Human Resource Management (HRM)

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Human Resource Management (HRM)
The Basics of Performance Management
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Definition

• A systematic process for improving organizational
  performance by developing the performance of
  individuals and teams.
• Establishing shared understanding about what is
  to be achieved,
• and for managing and developing people in a way
  that increases the probability that it will be
  achieved in the short and longer term.
• It is the responsibility of line management.

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Performance management ? performance appraisal
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Objectives of performance management

• to develop the capacity of people to meet and
  exceed expectations
• and to achieve their full potential.
• It provides the basis for self-development but it
  is also about ensuring support and guidance.

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Empirical findings on objectives
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CHARACTERISTICS OF PERFORMANCE MANAGEMENT

• planned process (continuous flexible)
• primary elements agreement, measurement,
  feedback, positive reinforcement and dialogue.
• comparing delivered performance (outputs) to
  expectations (objectives)
• it focuses on targets, standards, performance
  measures, inputs (developmental needs) and values
• management by contract (not by command)

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Understanding performance management
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Performance

• Achievement of quantified objectives
• How it is achieved appropriate behaviour, use of
  competencies, skills, knowledge

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Performance management and values

• Converting espoused values into values in use

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Alignment

• To align individual and organizational
  objectives.
• top-to-down bottom-to-top processes
• Objectives should be agreed not set, and this
  agreement should be reached through open
  dialogues between managers and individuals.
• This needs to be seen as a partnership in which
  responsibility is shared and mutual expectations
  are defined.

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Managing expectations

• It creates a shared understanding of
• what is required to improve performance
• and how this will be achieved
• by clarifying and agreeing what people are
  expected to do
• and how they are expected to behave.

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Significance of discretionary behaviour

• The encouragement of productive (!) discretionary
  behaviour.
• Discretionary behaviour refers to the choices
  that people make about how they carry out their
  work and the amount of effort, care, innovation
  and productive behaviour they display.
• The experience of success seen in performance
  outcomes helps reinforce positive attitudes.

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A guiding principle

• Most employees want
• direction,
• freedom to get their work done,
• and encouragement
• not control.

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Performance appraisal or performance management?
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Performance Management Cycle
? Planning concluding a performance and
development agreement. ? Acting managing
performance throughout the year. ? Reviewing
assessing progress and achievements so that
action plans can be prepared and agreed and, in
many schemes, performance can be rated.
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Performance Agreements

• Performance agreements form the basis for
  development, assessment and feedback in the
  performance management process.
• They define expectations in the form of a role
  profile that sets out role requirements in terms
  of key result areas and the competencies required
  for effective performance. The role profile
  provides the basis for agreeing objectives and
  methods of measuring performance and assessing
  the level of competency reached.

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Types of objectives

• ? On-going role or work objectives all roles
  have built-in objectives that may be expressed as
  key result areas in a role profile.
• ? Targets these define the quantifiable results
  to be attained as measured in such terms as
  output, throughput, income, sales, levels of
  service delivery, cost reduction,reduction of
  reject rates.
• ? Tasks/projects objectives can be set for the
  completion of tasks or projects by a specified
  date or to achieve an interim result.
• ? Behaviour behavioural expectations are often
  set out generally in competency frameworks

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Criteria for objectives (SMART)

• S Specific/stretching clear, unambiguous,
  straightforward, understandable and challenging.
• M Measurable quantity, quality, time, money.
• A Achievable challenging but within the reach
  of a competent and committed person.
• R Relevant relevant to the objectives of the
  organization so that the goal of the individual
  is aligned to corporate goals.
• T Time framed to be completed within an agreed
  time scale.

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Measuring performance in achieving objectives

• Measurement is an important concept in
  performance management.
• It is the basis for providing and generating
  feedback, it identifies where things are going
  well to provide the foundations for building
  further success, and it indicates where things
  are not going so well, so that corrective action
  can be taken.
• Measuring performance is relatively easy for
  those who are responsible for achieving
  quantified targets, for example sales.
• It is more difficult in the case of knowledge
  workers, for example scientists.

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Criteria for assessing performance

• The criteria for assessing performance should be
  balanced between
• ? achievements in relation to objectives
• ? the level of knowledge and skills possessed and
  applied (competences)
• ? behaviour in the job as it affects performance
  (competencies)
• ? the degree to which behaviour upholds the core
  values of the organization
• ? day-to-day effectiveness.

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Conducting a performance review meeting

• There are 12 golden rules for conducting
  performance review meetings.
• Be prepared
• Work to a clear structure
• Create the right atmosphere.
• Provide good feedback.
• Use time productively.
• Use praise.

1. Let individuals do most of the talking.
2. Invite self-assessment.
3. Discuss performance not personality.
4. Encourage analysis of performance
5. Dont deliver unexpected criticisms
6. Agree measurable objectives and a plan of action

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• RATING PERFORMANCE
• Most performance management schemes include some
  form of rating.
• This indicates the quality of performance or
  competence achieved or displayed by an employee
  by selecting the level on a scale that most
  closely corresponds with the view of the assessor
  on how well the individual has been doing.

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DEALING WITH UNDERPERFORMERS

• The improvement of performance is a fundamental
  part of the continuous process of performance
  management. The aim should be the positive one of
  maximizing high performance, although this
  involves taking steps to deal with
  under-performance.
• When managing under-performers, remember the
  advice given by Handy (1989) that this should be
  about applauding success and forgiving failure.
  He suggests that mistakes should be used as an
  opportunity for learning something only
  possible if the mistake is truly forgiven because
  otherwise the lesson is heard as a reprimand and
  not as an offer of help.

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360-degree feedback

• 360-degree feedback is a relatively new feature
  of performance management, although interest is
  growing. The Institute of Personnel and
  Development 2003 survey (Armstrong and Baron,
  2004) found that only 11 per cent of the
  organizations covered used it, but the e-reward
  2005 survey established that 30 per cent did.

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The 360-degree feedback model
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The 360-degree feedback model
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The performance matrix(a visual aid to rank)
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Thanks for your attention!